What is maximum stock?
The maximum stock level is a warehouse code. It refers to the maximum quantity of an item that should be stored. If this value is exceeded, excess stock is created, which in turn can lead to high storage costs and a lack of space. In the food sector, the threat of spoilage is a further problem. At the same time, the maximum stock level ensures that there is always enough material or goods available to remain ready for delivery. Another term for maximum stock level is maximum stock level.
How is maximum stock calculated?
To calculate the maximum stock level, you need the minimum stock level as a basis, which may never be undercut for an item.
The maximum stock level results from the minimum stock level and the optimum order quantity. As soon as the minimum stock level is reached, an order must be triggered. Depending on the delivery and storage costs, possible discounts and other criteria, there is a cost-optimised order quantity for this order. To calculate the maximum stock level, the minimum stock level and the optimum order quantity must be added together.
Maximum stock = minimum stock + optimum order quantity
